Newgen Software Technologies Ltd reported robust financial performance for the quarter ended September 30, 2025, with consolidated revenue increasing 11 % year-on-year to ₹400.8 crore and profit after tax rising 16.2 % to ₹81.7 crore.
EBITDA for the quarter reached ₹102.4 crore, marking a 23.4 % increase compared with the same period a year ago, while the EBITDA margin improved to 25.5 % from 23.0 % in Q2 FY25. Profit before tax (PBT) rose to ₹105.3 crore, up 13.8 % year-on-year.
Subscription revenues emerged as a key growth driver during the quarter, climbing 20 % to ₹126 crore.
Revenue from product and license sales stood at ₹74 crore, and implementation and related services accounted for ₹93 crore.
Together, annuity streams including support, cloud/SaaS, maintenance and subscription contributed ₹234 crore to total revenue.
Management highlighted an increased focus on expanding its footprint in target verticals and geographies.
The company added fifteen new client logos during the quarter and reported strong traction in its EMEA markets.
Chairman & Managing Director Diwakar Nigam said the growth momentum stemmed from solid subscription numbers and large-deal breakthroughs in mature markets.
CEO Virender Jeet added that Newgen is deepening its presence in the banking vertical and expanding into insurance policy administration systems (PAS).
He stressed the company’s commitment to an “AI-first” strategy and continuous investment in product innovation and cloud-native SaaS solutions.
The company’s performance comes amid a challenging macro-environment where many software firms are under pressure from softening demand and increased competition.
Yet Newgen’s growth in annuity-based revenue and improving margins appear to have given it a competitive edge.
The margin improvement in particular is notable, reflecting better operating leverage and disciplined cost controls.
For the half-year ended September 30, the company reported an 11.5 % year-on-year increase in net profit to ₹1,314.63 crore, with revenue rising 6.74 % to ₹7,214.49 crore.
Looking ahead, the management expressed optimism about continuing to scale the subscription business, capturing large deals in key markets and leveraging its product platform for growth.
However, it also acknowledged the need to navigate broader global macro-risks, including currency fluctuations and softening enterprise spending.
In summary, Newgen Software’s Q2 performance stands out for its double-digit revenue growth, strong profit uptick and margin improvement — underpinned by recurring revenue strength and strategic vertical expansion.
As the company pivots further toward cloud-native solutions and AI-driven platforms, its results may set the tone for how mid-cap software firms can maintain growth momentum in an otherwise cautious environment.
Also Read: Oil India’s $300 Million Dividend Stuck in Russian Banks